NZD/USD: struggles with 21-D SMA, bearish bias

• NZD/USD: trading with a mild negative bias overall. 
• NZD/USD: struggles with the 21-D SMA within the bearish channel. 

NZD/USD slipped from 0.7300 to 0.7260 overnight before recovering back 0.7280 territories into the close and up through the 21-hr SMA at 0.7283 in a fickle session for markets torn on the recent concerns over the beginnings of a trade war since Trump's announcements over tariffs on steel and aluminium imports. Currently, NZD/USD is trading at 0.7285 with a high of 0.7302 and a low of 0.7254.

NZ data coming through

There has been a lack of domestic data from New Zealand although we had the change in whole milk powder yesterday in as -0.8% vs the prev 0.3% with the GDT Price Index -0.6% vs prev -0.5%. For today, we have had New Zealand Q4 manufacturing sales 1.0% y/y (prev 0.3%).

Analysts at ANZ explained that there are a number of cross-currents in currency markets right now (US trade tensions, twin deficits, more hawkish Fed members, narrowing rate differentials, risk off/on sentiment) that make it difficult to know what the focus will be during each trading session. "But we still remain a mild negative bias towards kiwi overall."

Funda and political wrap: Trump expected to sign steel and aluminium tariffs Thursday

NZD/USD levels

Technically, the chart is leaning bearish with repeated recovery failures. However, daily RSI bias is up with the price back above the 50-Day SMA at 0.7262 but struggles with the descending 21-D SMA at 0.7290. 0.7360 is the key upside target to open a run towards 0.7435 daily high double top.